Overview

• China's Semiconductor Industry Association clarified that chip origin is determined by the location of the wafer fabrication plant, regardless of packaging or testing location.
• Tariffs on U.S. imports have been increased to 125%, escalating the ongoing trade conflict with the United States.
• U.S. chipmakers outsourcing production to Taiwan's TSMC will see their chips classified as Taiwanese origin, avoiding the steep tariffs on U.S.-origin products.
• The rule change is expected to boost China's domestic semiconductor industry, with local foundries like SMIC and Hua Hong seeing significant stock price increases.
• Analysts warn the new tariffs and origin rules could undermine U.S. reshoring efforts, potentially driving semiconductor manufacturing overseas.